Horror of horrors. No black zero in sight for USA, German media lament.

The Spiegel boys gave themselves a break from all those Trump scandals they keep digging up and which will all lead to impeachment, yaddayaddayadda. Reason being, they found something very dear to a German and that is the Swabian-housewife-mindset-based economic axiom of a balanced​ budget, also known under the scientific term coined by Wolfgang Schäuble, the Black Zero. According to that the USA is basically fooked.

Trumps Economic Policy

US must make more debt - $ 250 billion

Independent budget experts do not think it possible that Trump can achieve a balanced state budget - without new debts - through its program.

Why the f&%k should Trump or the USA care about a higher deficit???

Reading this, my toe nails started wilting. My head kept falling back. My eyes glazed over. IOW, I needed a GT. Or some sanity called plain truth like this from Ellis Winningham.

Just an excerpt as a teaser:

III. Monetary Instruments

– The US dollar is a monetary instrument.
– A monetary instrument requires an issuer, a face value, and a promise from the issuer that it will take back the monetary instrument as payment for something.
– The US dollar is the supreme monetary instrument in the United States.
– There is nothing ‘natural’ about the US dollar.
– The US dollar is a man-made thing.
– The US government alone issues the US dollar.
– Gold itself is not a monetary instrument.
– A gold coin issued by the US government is a monetary instrument, because it has an issuer and a face value stamped on it, not because of the gold contained in the coin.

V. Fundamentals of a Modern Monetary Economy

– The US government requires goods and services to operate as government.
– The US government taxes citizens and businesses so that it can move goods and services to itself.
– The US government declares severe penalties for not paying the federal tax.
– Federal tax is payable only in US dollars.
– Because of the federal tax and the consequences for not paying the federal tax, the citizens and businesses must sell their goods and services to the US government in exchange for the US government’s US dollar.
– The US government chooses the price that it will pay in its own currency (US dollars) for goods and services.
– Because the US government is the only issuer of the US dollar and chooses the price that it will pay for goods and services, the US government is the price-setter for the market, and the market begins operating based on the US government’s US dollar.
– The US market is the creation of the US government.
– Citizens and businesses can now pay their federal taxes and can accumulate a savings in US dollars if any US dollars remain after the federal tax settlement
– Federal taxation invokes a demand for the US dollar and the US government’s ability to enforce tax collections maintains that demand.
– Federal taxation reduces spending power to attenuate inflationary pressures.
– Federal taxation alters society’s behaviour.
– Federal taxation frees up real resources for the US government’s use.
– Federal taxation withdraws US dollars from the nation and destroys them.
– Federal spending always comes prior to federal taxation.
– All federal spending is US dollar creation.
– A federal budget deficit adds more US dollars to the nation
– A federal budget surplus withdraws US dollars from the nation.
– The US national debt is the sum total of all US dollars spent into existence by US government and added to the nation through deficit spending, since the beginning of the United States, minus what the US government withdrew in taxation since the beginning of the United States. (Deficits – Surpluses = The National Debt)
– The $20 trillion national debt is not an actual debt of any kind.
– The US government’s debt equals the nation’s savings.
– Because the US government deficit spent $20 trillion, the nation now has $20 trillion in savings.
– The national debt is a group of savings accounts held at the Federal Reserve called ‘securities accounts’.
– After a successful bid for US Treasury bonds, reserve balances held in reserve accounts at the Federal Reserve are shifted to securities accounts held at the Federal Reserve.
– To ‘pay off’ the national debt, the US government simply shifts the balances held in securities accounts at the Federal Reserve back to reserve accounts held at the Federal Reserve.
– Imports are real benefits, exports are real costs.
– When a nation imports more than it exports, the nation in question is what we call a ‘net importer’ and this status results in a current account deficit.
– Foreign entities and nations do not finance US consumers’ purchase of imports.
– The current account deficit exists because foreign entities desire to save in US dollar
denominated financial assets.
– To save in US dollars, foreign entities must sell their production to US consumers in exchange for US dollars.
– There is no such thing as a ‘trade imbalance’ because the current account deficit is offset, dollar-for-dollar, by a capital account surplus.
– When the rest of the world decides that it no longer wishes to save in US dollars, then foreign entities will stop exporting their production to the US, eliminating their US dollar savings, and the current account deficit will evaporate.
– Since a current account deficit exists, the US government cannot run a budget surplus, because (G – T) = (S – I) – (X – M).
– (G – T) = (S – I) – (X – M) is not subject to opinion. There is no way around it.

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Imports are real benefits, exports are real costs!!!

You hear that, German economists and full-blown idiots?
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the rest here.